Fitch Ratings has completed a peer review of three rated aircraft lessors, resulting in the affirmation of the long-term Issuer Default Ratings (IDRs) of AerCap Holdings (‘BB+’), Aviation Capital (‘BBB-‘) and BOC Aviation (‘A-‘). The Outlooks remain Stable. Company-specific rating rationales are described below, and a full list of rating actions is provided at the end of this release.

Fitch said the aircraft leasing sector has experienced another year of strong performance, which has been characterized by strong airline industry fundamentals, favorable credit markets, improving lease rates and consolidation among lessors. Profitability in the airline industry has continued to improve this year, which has resulted in a lack of significant credit issues among the lessors.

Fitch notes that aircraft financing has become more plentiful with increasing investor appetite and the securitization market re-emerging. This favorable environment has attracted new competition from a variety of sources, both global and regional in nature. As the industry has grown, the market has become more segmented with numerous strategies and value propositions.

To view the full Fitch Ratings report, click here.